Coupon Accepted Successfully!


Historical Volatility and Implied Volatility


  • Historical Volatility (HV)
    • Historical variability in stock price returns
    • Backward looking
    • Calculated by using historical share prices
  • Implied Volatility (IV)
    • Model implied variability
    • Black Scholes model can be used to determine Implied Volatility
    • Forward looking
    • Reflects market opinion in the likely volatility of a stock

Test Your Skills Now!
Take a Quiz now
Reviewer Name